Nov 3, 2020 07:57 UTC
Nov 3, 2020 at 07:57 UTC
HSBC Bangladesh has finished the country’s first blockchain motorized cross border trade established by means of a letter of credit. The Bangladesh branch of worldwide banking firm HSBC has lead the country’s 1st blockchain founded letter of credit LC deal on the Contour DLT stage.
The deal was rummage-sale to relax the import of 20,000 tonnes of fuel oil from United Group’s Singapore lesser United Mymensingh Power.
Md Mahbub ur Rahman HSBC Bangaladesh’s chief executive, defined the deal as showcasing the bank’s pledge’to secondary cross-border trade by ‘cutting-edge technology platforms.’
‘I trust this will usher in a new era of routing international trade transactions as businesses & governments know transparency, security & swiftness in execution tasks using blockchain technology.’
Worldwide payments service SWIFT projected that Bangladeshi trades by LCs were value more than $34 billion throughout the first half of 2020.
By exploiting blockchain technology, the time taken to procedure the deal was abridged from between 5 & 10 days to less than 24 hours. Moinuddin Hasan Rashi United Group’s managing director, says:
‘Fuel oil LCs are highly time-sensitive where every second counts & we trust this blockchain technology will aid to manage time efficiently & also ensure increased competence & better cost management.’
Contour is a blockchain stage built using R3’s Corda that attaches financial institutions & business objects in a ‘decentralized trade finance network.’
Contour is possessed by eight financial institutions counting HSBC,citi, ING, Bangkok Bank, SEB,BNP Paribas, Standard Chartered, & CTBC. The stage’s development instigated in mid-2017, then-dubbed “Voltron,” beforehand launching in shut beta the next year.
80 dissimilar entities spanning 17 countries verified the Contour foremost up to its profitable beta launch at the start of 2020, with the stage exiting beta just 1 month ago.
Contour has also been rummage-sale to relax a 176,000 iron ore trade between China & Malaysia with the Philippine founded Asian Development Bank also by the stage to execute the chief cross-border blockchain LC deal between Thailand & Vietnam .